Planning transportation in Canada is mostly about getting from point A to point B. Cities are far apart, airports are rarely central, and public transit doesn’t help much once you’re outside big cities. If your plans include road trips, national parks, or smaller towns, renting a car in Canada is usually the simplest option.
To budget accurately, you must have an idea of the rental car cost in Canada. The daily rate is only part of what you’ll pay. Provincial taxes, required insurance, airport fees, fuel rules, and optional add-ons can all increase the total. This guide breaks down typical rental prices so you can estimate your real costs before booking.
Renting a car in Canada is priced by the day, with larger vehicles generally costing more. Here’s a quick look at typical daily base prices (before taxes and optional extras) for different car categories at a major airport:
Most Canadian rentals include unlimited mileage and basic third-party liability insurance by law. Also, you’re covered if you damage someone else’s property or injure another person. The base price typically does not include collision damage insurance for the rental car itself.
Depending on where you rent, you usually don’t pay the full cost upfront when booking; many services let you pay at pick-up or with a small deposit. Now, let’s break down the cost to rent a car in Canada:
Small or compact cars are the most budget-friendly option and great for city driving or couples. When you book an “Economy” or “Compact” class, the price might look like. These cars usually have an automatic transmission, air conditioning, and space for about 2 large bags. They’re easy to park and fuel-efficient.
Medium (also called Intermediate) cars offer more legroom and comfort for a slightly higher price. They’re a good choice for highway driving or small families. You get a bit more trunk space (3 to 4 bags) and a smoother ride for longer trips. The features are similar (automatic, A/C), but the car is a mid-size sedan, so you'll have more space to stretch out on those longer road journeys. An Intermediate category car costs roughly:
If you want a vehicle with higher ground clearance or plan to visit mountainous areas, a 5-seat SUV is a popular choice. There are usually two sizes in this category:
For bigger families or groups, Canadian rental fleets offer full-size SUVs with third-row seating:
Besides the regular cars and SUVs, you can rent vans or other special vehicles in Canada. They tend to cost much more, due to their size and specialty use.
The cost jumps steeply for these specialty vans. Not every rental location have them, and some provinces have restrictions on 15-seater vans for safety reasons. Also, unlimited mileage might not apply to a very large van. Always check, as some rentals put a daily kilometre cap on these.
In Canada, car rentals are subject to sales tax, and the rates vary by province. There is a 5% federal Goods and Services Tax (GST) on all rentals, and most provinces add their own Provincial Sales Tax (PST) or use a combined Harmonized Sales Tax (HST).
For example, in Alberta, you would only pay the 5% GST (no provincial tax), whereas renting in Ontario adds a 13% HST, and in British Columbia, you would pay 7% PST on top of 5% GST (12% total). Some provinces even tack on small fixed fees (in BC, there’s a CAD $1.50/day rental car tax). This means the final bill will be higher than the base rate. Here’s an example price breakdown for a four-day economy car rental:
Each city or airport may also have additional fees, such as airport concession fees or vehicle licensing fees. These are usually included in the “Taxes & Fees” section of your quote. The important thing is to budget an extra 10 to 20% on top of the base price for taxes and local fees, depending on where you rent.
Always check the detailed quote. Reputable sites will show an itemised list before you pay. Tax rates can change over time and differ by location, so the exact amount may vary.
When you pick up the car, the rental company will require a security deposit on your credit card. This is a temporary hold (pre-authorisation) to cover any potential damage or additional charges. Typically, around CAD 300 to 500 is blocked on your card.
The credit card must be in the primary driver’s name. Cash or debit card deposits are generally not accepted at the time of rental. According to rental policies, you should have at least $200 available credit for a small car, more for higher-end vehicles.
What happens to this deposit? If you return the car in the same condition, with a full tank (unless you prepaid for fuel), and with no extra fines or fees, the hold on your card is released. You won’t be charged the deposit amount. It just temporarily reduces your available credit.
Usually, the hold is released within 24 to 48 hours after you drop off the car, but it can take up to a week for the funds to be returned to your account, depending on your bank. Be sure you plan for this deposit. Ensure your credit limit can accommodate the rental deposit and the rental cost.
Hiring a car in Canada is an easy decision if you know what to expect before you book. Prices increase as you choose bigger vehicles, and taxes and fees will always push the final total above the advertised rate. The easiest way to stay on budget is to choose the smallest vehicle that fits your needs, factor in an extra buffer for taxes and deposits, and review the full quote carefully.
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It depends on the car type and season. On average, a rental car in Canada costs around CAD $45 to $70 per day for a standard car (before taxes). Small economy cars can be cheaper (~$40/day), while larger SUVs or vans can be over $100/day. Always remember to add about 10 to 20% for taxes and fees to the base rate.
Yes, renting a car in Canada for tourists is easy. You’ll need a valid driver’s licence, an International Driving Permit if your licence isn’t in English or French, a credit card in your name for the deposit, and to meet the age requirement. Young drivers under 25 may be subject to a surcharge.
Basic liability insurance is already included in Canadian car rentals. However, the rental company will likely offer optional insurance to cover damage to the rental car (Collision Damage Waiver) and theft. If you don’t have any coverage for the rental vehicle, purchase the CDW to avoid paying for the full value of the car in case of an accident.
